What was the compensation expense associated with ESOP for Christian Brothers Automotive in 2022?
Christian_Brothers_Automotive Franchise · 2025 FDDAnswer from 2025 FDD Document
lders' equity | $ 663,061,823 | $ 576,351,339 |
Consolidated Statements of Income Years Ended December 31, 2023 and 2022
| 2023 | 2022 | |
|---|---|---|
| Revenues | $ 137,196,643 | $ 122,309,502 |
| Operating Costs and Expenses | ||
| Cost of revenues | 42,731,504 | 40,601,283 |
| Selling, general and administrative expenses | 50,507,014 | 41,565,152 |
| Compensation expense associated with ESOP | 10,121,713 | 14,206,798 |
Source: Item 23 — RECEIPTS (FDD pages 76–372)
What This Means (2025 FDD)
According to Christian Brothers Automotive's 2025 Franchise Disclosure Document, the compensation expense associated with their Employee Stock Ownership Plan (ESOP) in 2022 was $14,206,798. This figure reflects the cost to Christian Brothers Automotive related to employee compensation through the ESOP program for that year.
For a prospective franchisee, this number provides insight into one aspect of Christian Brothers Automotive's financial structure and employee benefits. While franchisees are not direct participants in the ESOP as employees of the parent company are, understanding the overall financial health and employee investment strategies of the franchisor can be valuable. A significant ESOP expense suggests that Christian Brothers Automotive is investing in its employees' future, which can correlate with higher employee retention and motivation.
It's important to note that ESOP contributions can fluctuate from year to year based on company performance, changes in the plan, and other factors. The 2023 figure was $10,121,713, showing a decrease from the previous year. Franchisees should consider these expenses as part of the overall financial picture of Christian Brothers Automotive, as they can impact the company's profitability and long-term stability. Reviewing trends in ESOP expenses over several years, if available, would provide a more comprehensive understanding.